MG Rover Parts, a newly formed company within MG Rover Holdings, has finalised a deal with Caterpillar Logistics to build a world wide parts distribution operation which will commence business in March 2002.

The deal creates an infrastructure for MG Rover to fully develop its parts operation, which has an expected turnover in the region of £250 million.

Unipart, which has supplied parts for Rover and MG cars since 1987, will continue to work with the new company, providing 'legacy' parts for cars registered prior to 1995 and its own 'all makes' parts range. This, together with MG Rover's own 'original equipment' range, will give franchised dealers the choice of over 100,000 items from a single source.

"Taking full control of the parts operation is strategically very important for the business," said MG Rover Chief Executive Kevin Howe. It allows more control over costs and opens up new marketing opportunities."